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  1. #1

    Default Vendor's Agent Bidding at Auction?

    Not sure if this is the right sub-forum but I guess it falls under legal...
    Is it ethical for the listed agent of a property to bid on that property at auction on behalf of an over-the-phone buyer (over-the-phone buyer was not the vendor, as I know the vendor can technically bid up to the reserve)?

  2. #2
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    Over the phone bidding is done all the time.
    Squadly dinky do!

  3. #3
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    Ethical? Questionable.
    Legal? Definitely.

    I believe it's called Vendor bid.

  4. #4
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    Quote Originally Posted by jack2016 View Post
    Ethical? Questionable.
    Legal? Definitely.

    I believe it's called Vendor bid.
    I think it is supposed to be disclosed at the start of the auction that there could be vendor bids.

  5. #5
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    Quote Originally Posted by Wayne View Post
    I think it is supposed to be disclosed at the start of the auction that there could be vendor bids.
    I've always found the vendor bid setup very unethical. They can only bid 'up to the reserve' but nothing stops the reserve being set at $5M, does it? Vendor bids a potential purchaser up to $900k when there was no other interest above $700k, then suddenly auction stops and it's on the market at $900? It's wrong.
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